Allakos (ALLK) : topline results from its phase 1 trial of AK006 in patients with chronic spontaneous urticaria

– AK006 did not demonstrate therapeutic activity in CSU

– Allakos will discontinue further development of AK006, reduce workforce by 75% and explore strategic alternatives

 

Allakos Inc., a clinical stage biotechnology company, develops therapeutics that target immunomodulatory receptors present on immune effector cells in allergy, inflammatory, and proliferative diseases in the United States. The company's lead product candidate is AK006, which in a Phase I clinical trial for the treatment of chronic spontaneous urticaria (CSU) and other indications.

• Sector: Healthcare
• Industry: Biotechnology
• Full Time Employees: 131
• Incorporated in 2012 
• Headquartered in San Carlos, California
• https://www.allakos.com

IPO: July 19, 2018; Allakos priced an upsized 7.2 million shares offering at 18, above the expected range of 15 to 17. Shares closed at 31.25, up 73.6% on the first trading day.

Allakos announces topline results from its phase 1 trial of AK006 in patients with chronic spontaneous urticaria and announces restructuring 

• Co announced topline results from its phase 1 clinical trial of AK006 in chronic spontaneous urticaria (CSU).
• "While AK006 was well tolerated, we are disappointed that the preclinical inhibitory effects observed did not translate to clinical benefit in patients with CSU. As a result, the Company has decided to discontinue further clinical development of AK006," said Chin Lee, M.D, M.P.H., Chief Medical Officer of Allakos. "We express our gratitude to all of the patients, clinical trial investigators, and site coordinators in these trials."
• The Company ended the fourth quarter of 2024 with approximately $81 million in cash, cash equivalents, and investments (unaudited).
  
• The Company estimates that cash used in restructuring activities to closeout AK006 development, including severance and contractual payments to vendors, will be approximately $34 million to $38 million. The
• Company also estimates that a significant majority of these restructuring costs will be paid over the first and second quarters of 2025.
• The Company estimates it will have cash, cash equivalents and investments in a range of approximately $35 million to $40 million at June 30, 2025.